Searching deep: The quest for Bitcoin scalability through layer two protocols

The quest for a workable Bitcoin scalability solution is still ongoing with developmental efforts in protocols like the Lightning Network and Statechains.
As the largest cryptocurrency by market capitalization, Bitcoin’s (BTC) effectiveness as a medium of exchange is still a matter for debate. Unlike fiat money that is inherently infinite in supply and must be managed by a central bank, Bitcoin is akin to gold in that it is commodity money with a finite supply of 21 million.However, the supply cap is not the major stumbling block for BTC as a medium of exchange, but rather, the transaction throughput. While Satoshi Nakamoto envisioned Bitcoin as a peer-to-peer electronic cash system capable of facilitating online payments without a central counterparty, seven transactions per second on average is hardly the standard for scalability.Indeed, scalability is only one of three major metrics required for any currency system to succeed as a medium of exchange along with adoption and liquidity. There is an argument to be made of Bitcoin’s growing adoption around the world across several strata of the global economy.Price volatility that has seen Bitcoin peak at $58,000 and then briefly fall below the $30,000 mark within the first two months of 2021 likely indicates lingering issues with liquidity. However, it’s important to note that the current period is being characterized by a bullish advance that began in October 2020. Ultimately, some analysts expect Bitcoin’s volatility to level out as more institutions take up positions in the market.What do the …
Story continues on Cointelegraph

Related posts
BitcoinCointelegraph.comEthereumInvestmentStimulus check

You’d have $10K now if you’d invested April’s stimulus in Bitcoin — and more with ETH

People who invested their first stimulus check into Bitcoin in April 2020, would now have more than $10,000. A Twitter account named “$1200 Stimulus Is Now Worth” has been tracking how much the first US $1200 stimulus would be worth…
carbon footprintCO2 emissionsCointelegraph.comNewsNFTNifty GatewayNon-fungible Tokens

True or false? A single NFT can power a European household for 1.5 months

NFTs are coming under scrutiny as more attention is drawn to the carbon footprint of PoW blockchains. The recent boom in non-fungible tokens, or NFTs, has been accompanied with controversy and concern over the technology’s environmental impact due to the…

Israeli asset manager doubles its $100M Bitcoin investment in just two months

The firm invested $100M into the Grayscale Bitcoin Trust late last year, it has sold one third and it’s holdings are still worth $50M more than the purchase price. Israel’s Altshuler Shaham Investment House has doubled its money after tipping…